Chile's domestic demand pushes down avocado exports
High domestic demand and currency values have led to lower avocado exports from Chile this season, but not all importing businesses abroad have suffered supply setbacks.
A Giumarra Agricom representative has told Freshfruitportal.com that despite the lower supply of Chilean avocadoes to the U.S. industry, his company has not been affected.
"It’s been good because we’re partnered with buyers, growers and export companies down there and they’ve supported us throughout the season, with high quality and good volumes," he said.
"The industry in general has been affected - realistically the quality was high but the crops and what came out for import was not as much as expected, but that’s the world of alternate-bearing fruits and there’s always variance from year to year".
"That’s the nature of the business. Sometimes you have to deal with exchange rates and alternate bearing, but that’s just the industry".
Chile Avocado Committee president Adolfo Ochagavía told Freshfruitportal.com the country would export 88,000 metric tons (MT) this season with the majority headed for the U.S. with 53,000 MT, 27,000MT bound for Europe and 7MT to Argentina. Chile's internal avocado consumption is expected to be 72,000MT.
Ochagavía highlighted the fact Chile has such high domestic demand, attributing the trend to promotion activities.
"What happens is that markets are dynamic, they evolve, to the extent that if you teach the market to eat a certain fruit then they will eat it more," he says.
"(It's) the product of years of promotion that we have reached the system we have today. While it is a difficult season in terms of fruit availability, at half the level of last season, it's also to do with distribution in the market due to promotions.
"Indeed, the dollar's strength is also another reason to sell in the domestic market."